The forgotten breed
– The emergence of the Middle Manager's new
role as a change agent
Author(s): Karin Tegethoff
Sissy Viklund
Leadership and Management
in International Context
I
Acknowledgements
First of all, we would like to thank all the people who have contributed with their help and support to our research.
We express our gratitude to our tutor and head of the program Prof. Dr. Philippe Daudi. Throughout our thesis he has been a great support. The valuable advices and the feedback from him gave us a lot of inspiration and ideas for our research project.
Furthermore, we would like to thank all the consultants for their valuable inputs to our empirical research. Without their insight to the practice, we would not have been able to accomplish this project. Therefore, we would like to show our gratefulness to Peter Cheese, Mats Lindblad, Johan Majlöv and Dorte Sandager. We appreciate the time and effort they dedicated to us.
In this context, we would also like to thank Linnaeus School of Business and Economics for the grant they provided us with; it was a great support for our research.
We would also like to express thanks to Terese Johansson for her efforts in organizing the program and for her support during our research process.
The last year on the Master‟s program in „Leadership and Management in International Context‟ has been an unforgettable and precious time for us and therefore we would like to once again utter our appreciation to the head of the program, Prof. Philippe Daudi. He taught us that “The Art of Leading Others Comes from the Art of Leading Oneself”; guiding words which will influence our future life.
Thank you!
II
Abstract
Most organizations of today are more or less influenced by the globalization. This phenomenon has led to that changes belong to the everyday concern of companies in order to be ahead of the competition. Simultaneously, when it comes to discussions about change failures and successes, it mainly is the top management standing in the spotlight. Therefore, the aim of this thesis is to take a glance backstage of organizational changes while focusing on middle management. The purpose of this research is to examine how the middle manager can become a change agent and what contributions this new role can bring to the company. A glimpse on the historical evolution of the middle manager´s role and status helps to identify the underlying causes for the existing stereotype of this management group as well as the reasons for why middle management seems to belong to the „forgotten breed‟ in organizations. Furthermore, the concept of changes and change management is outlined in order to clarify why changes fail and how those failures can be prevented with the help of a change agent. Based on this theoretical framework, the potential of middle managers acting as change agents is discussed. Additionally, due to the fact that the middle manager‟s role as a change agent is not fully recognized yet, an own developed concept is outlined. This model is created as a result of empirical research in terms of interviews with consultants as well as extensive literature studies within this research area. The concept demonstrates how a middle manager can become a change agent and which contributions this new role can bring to the organization. Overall, it can be concluded from the research that it is time for organizations to recognize the potential of middle managers; they are the ones who can make changes happen.
Keywords: middle management, organizational changes, change management, involvement,
III
Table of content
I INTRODUCTION... 1
1 Research problem ... 1
1.1 Research question ... 2
2 The legitimacy of the research ... 3
3 The research concept ... 4
3.1 The research process ... 4
4 Limitations ... 6
5 The target group... 6
II METHODOLOGY ... 8
1 The process of knowledge creation ... 8
2 Research approach ... 9
3 The systems view applied on a business context ...11
3.1 Management as a system ... 12
4 Research strategy ...13
4.1 Case studies ... 14
5 Sample selection ...16
5.1 Sample criteria ... 17
6 Data collection methods ...18
6.1 Interviews ... 19
7 Data analysis ...20
8 Research quality ...21
8.1 Validity ... 21
8.2 Reliability ... 22
III THEORETICAL FRAMEWORK ... 23
1 The field of management ...23
1.1 What is management? ... 23
1.2 Management and hierarchies ... 24
1.3 Management vs. Leadership ... 26
2 Historical evolution of the role and status of middle managers ...27
2.1 Middle managers - The heroes ... 27
2.2 Middle managers - The victims ... 28
IV
3 The concept of change ...31
3.1 Definition of change ... 31
3.2 Challenges of change ... 31
3.3 Organizational changes and change management ... 32
3.3.1 Lewin‟s three step model ... 33
3.3.2 Theory E & O ... 34
3.4 The role model for successful changes – The agile organization... 36
3.5 The change agent ... 37
3.6 How to lead change ... 38
3.7 Resistance to change ... 40
3.7.1 The Krüger model ... 40
3.7.2 Convincing through persuasion ... 41
3.8 Communication of change ... 42
4 The middle manager’s role in organizational changes ...44
4.1 The middle manager‟s unique position ... 45
4.2 The middle manager as communicator ... 45
4.3 Middle management and top management ... 46
4.4 The middle manager as change intermediary ... 47
4.5 The middle manager as the supporting asset ... 48
4.6 The middle manager caught between present and future ... 49
4.7 The core value of middle management ... 49
4.8 The middle manager‟s ability to lead ... 50
5 Reflecting the theoretical framework ...50
IV EMPIRICAL DATA REVIEW & ANALYSIS ... 52
1 Paradox of the task-oriented versus relation-oriented role ...52
1.1 Caught in the task-oriented role ... 53
1.2 The importance of the relation-oriented role ... 54
2 Paradox of guidance from the top versus involvement from the bottom ...56
2.1 Guidance issues during organizational changes ... 56
2.2 Goals as prevention for change failures ... 57
2.3 The importance of the middle manager‟s involvement in organizational changes ... 59
2.4 The middle manager as coach and communicator in organizational changes ... 61
3 Paradox of loyalty towards top management versus employees ...64
3.1 The middle manager‟s psychological burden during organizational changes ... 65
3.2 The middle manager‟s loyalty towards a diversified workforce ... 66
3.3 Finding a loyal middle manager ... 67
4 The middle manager as bridge builder between the paradoxes ...69
V EMERGING THEORY... 71
1 Reflections on the research process ...71
2 The DICE-model ...72
V
2.1.1 Defining the middle manager‟s role and work responsibilities ... 73
2.1.2 Identifying the right middle manager ... 73
2.1.3 Coaching the needed skills ... 74
2.1.4 Empowering the middle manager ... 75
2.2 The contributions of the middle manager as a change agent ... 76
3 The DICE-model implemented in practice ...76
4 The forgotten breed ...77
VI RECOMMENDATIONS FOR THE FUTURE ... 78
VII LIST OF LITERATURE ... 80
VIII APPENDIX ... 86
VI
List of Figures
Figure 1: The research process ... 5
Figure 2: The central function of methodology ... 10
Figure 3: Management as a system ... 13
Figure 4: The lighthouse approach ... 15
Figure 5: Specialization fields of the consultants ... 17
Figure 6: Management layers ... 25
Figure 7: Evolution of the status and role of middle managers ... 27
Figure 8: Lewin‟s three step model ... 33
Figure 9: Eight steps to transform the organization ... 39
Figure 10: Actors of change and their behavior ... 40
Figure 11: Communicating a major change ... 43
Figure 12: The correlation between top- and middle management ... 46
Figure 13: Middle managers as change intermediaries ... 47
Figure 14: Gap between change management and middle management ... 51
Figure 15: Paradox of the task-oriented versus relationship-oriented role ... 55
Figure 16: Paradox of guidance from the top versus involvement from the bottom ... 63
Figure 17: Paradox of loyalty towards top management versus employees ... 68
Figure 18: The correlation between the paradoxes ... 69
Figure 19: The DICE-model ... 72
Figure 20: The new role of middle managers ... 77
List of Tables
Table 1: Research strategies ... 14Table 2: Expectations of members of the real system ... 16
1
Whoever desires constant success must change his conduct with the times. (Niccolo Machiavelli)
I Introduction
In this chapter the focus of our research field will be presented, which is followed by our research question. In addition, we will discuss the importance of our study and the legitimacy for our choice of research area. Further, an overview of our research process will be outlined, in order to finalize the chapter with the limitations and the target group of this thesis.
1 Research problem
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Especially in the older literature, the function of middle managers was described as controllers and quality inspectors and these requirements are not needed today due to that the controlling function of middle managers is replaced by technology systems (Drucker, 1988, Hammer & Champy, 1993). However, the role of middle managers is still vital. More updated research shows that middle managers constitute an important asset for the organization; nonetheless it has been discussed in literature and in practice that the middle manager often is confined by top management. Jackson and Humble (1994) claim that the old image of the middle manager as a controller has to be diminished; they should rather be considered as a combination of teacher, cheerleader and liberator. These characteristics become especially important in change processes as it is claimed by Huy (2001), who regards the middle manager as an important contributor in terms of organizational change implementations. In today´s globalized world, every industry is in need of changes in order to stay competitive and the involvement of the entire personnel becomes an integral part in order to accomplish successful organizational changes (Kanter, 2003).
The typologies and dimensions of changes are complex, but irrespective of that, all changes have to be managed and implemented within an organization. Studies show that a lot of changes fail within the praxis and the reasons for that are manifold. Beer and Nohria (2000a) explain that 70 per cent of all change programs fall short and therefore a better understanding for changes is required in order to implement changes in a more successful manner. Huy (2001) explains that the middle manager could be a good communicator for changes. Moreover, the middle manager is regarded as important due to the fact that he or she has the ability to see the „whole‟ organizational picture as a result of the closer relationship to the employees compared to the more distanced senior manager. On the contrary, some scholars claim that middle managers are an obstacle for changes within organizations and therefore they are often not being involved in the change process. (Scarbrough & Burrell, 1996, Dopson & Neumann, 1998) Peter Cheese, a former top consultant at Accenture1, explains that top leaders often disregard the middle management
and fail in rewarding or recognizing them. Additionally, it is explained that middle managers frequently lack support from senior management, simultaneously as misleading directions are communicated during the change process (Cheese, 2010a).
1.1 Research question
As mentioned, there is no clear picture or understanding about the role of middle managers, neither in theory nor in practice. Further, we live in a time and in a society where rapid changes constitute an everyday concern for most businesses. Therefore, we want to combine these two phenomena in order to create a bridge between the two fields; middle management and organizational changes.
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Our aim is to provide a solution for the following research question:
The middle manager as a change agent – How is it possible? What contributions does this role bring to the organization?
2 The legitimacy of the research
We can identify several reasons for the legitimacy of our research field. Surveys about middle managers and their authority within organizations have been conducted by researchers like Huy (2001), Osterman (2009) as well as Balogun (2003) and show the importance and actuality of our chosen topic. Furthermore, these researchers as well as Rosabeth Moss Kanter (1982 & 1984) add the potential middle managers have as „change agents‟, „change masters‟, „change intermediaries‟ or „change contributors‟. Moreover, the different consultants being in contact with confirmed the importance of our chosen research topic. Peter Cheese for instance, listed amongst the "Top 25 Consultants" for 2008 confirmed us the legitimacy for our research field when he wrote: “I think we have a lot to do
in most organizations in developing middle managers. Part of their role will always be making change happen - change cannot just go from top to bottom, but in too many organizations we have done a poor job in building the skills of middle managers to effectively manage and understand change, and also to recognize and reward them for this” (Cheese, 2010a). By this
statement it becomes clear that change management and middle management are in close connection to each other and that there is a lot of hidden potential in the middle layer of an organization; the task that remains for the top layer is to train them in the right way and to create an understanding for the change per se. Here the importance of consultants becomes visible, due to the fact that they can take on the task of training the middle manager at the same time as they can make the top management aware of this vital duty.
This research can moreover be justified in general terms. The globalization process around the world has led to an ever changing environment to which organizations have to adapt in order to stay competitive. Furthermore, the shift from a manufacturing based economy towards a knowledge based economy has led to changes in organizations as well as their management and leadership approach (Drucker 1988 & 2008). Additionally, a generation shift is occurring where baby boomers2 and the younger generation X3 and Y4 have to cope
with each other; leading to further organizational changes due to the fact that they constitute differing cultures and have different demands in the workplace (Hewlett, Sherbin & Sumberg, 2009).
2 Baby boom generation is born 1946-1964 during Post-World War II (Simons, 2010). 3 Generation X is born 1965-1976 (Simons, 2010).
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Thus, it is of outmost importance for organizations to handle such changes successfully in order to stay competitive. Organizations have to be aware of the fact that changes are necessary and inevitable in today‟s world and the biggest challenge for companies is to manage them in the right way. Already Charles Darwin said that “It is not the strongest of
the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.“ (Charles Darwin, 1809-1882).
We believe that middle managers can play an important role in this context as they have a lot of potential to manage changes in a successful manner. Organizations have to become aware of this fact in order to get the most out of their workforce during change processes and thereby being able to withstand the pressures from outside the organization.
3 The research concept
The empirical research is based on our „lighthouse approach‟, which has the aim to describe the middle manager‟s role in organizational changes from different perspectives; in our study being presented from the consultant‟s point of view. Various experiences and narratives from the consultants will be outlined, with each story covering the middle manager‟s role during organizational changes.
Due to the fact that the demand for consultants is growing in the rapid changing environment of today, their profession is becoming a vital part of operating organizations. Out of this reason we decided to conduct our empirical research from the consultancy perspective. The European Federation of Management Consultancies Associations (FEACO 2010) conducted a survey on the European consulting market in the year 2008, which proved the fact that the consulting market is growing continuously; with the business consulting service constituting the largest segment. Moreover, we have realized that our chosen research field has not been discussed from a consultancy perspective to a very wide extent yet. Nevertheless, we believe that this standpoint is important and justified as the consultant can provide us as researchers with an objective point of view about the middle manager‟s role in companies. The consultant is able to see the whole picture of the organizational context and has a broader perspective of the change situation within the organization. Moreover, as a result of the consultant‟s broader view of the change situation he or she can provide us with more information than a middle manager, at the same time as the consultant reports from an objective point of view due to his external position. On the contrary, the middle manager can only speak from his or her own perspective and thereby a subjective story is created.
3.1 The research process
5
need certain aspects to be covered and discussed. Figure 1 below outlines the integral parts of this dissertation, simultaneously as the figure serves as an overview of the performed research process that is needed and vital to go through in order to meet the research objective and to solve the research question per se.
Figure 1: The research process
Source: constructed by the authors
Research question, objectives and purpose
The methodology for knowledge creation
Chapter I Chapter II Chapter III Theoretical framework Historical evolution of the middle manager´s
role & status
The concept of change Chapter IV Chapter V The middle manager´s role in organizational changes Emerging theory
Paradox of the task-oriented vs. relation-oriented role
Paradox of guidance from the top vs. involvement from the bottom
Paradox of loyalty towards top management vs. employees
The middle manager as a change agent
Empirical data review & analysis
The middle manager’s role as a change agent – How is it possible?
What does this role contribute to in organizational changes?
Research approach Research strategy Research analysis & quality Data collection
Recommendations for the future
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After having outlined the background and aim of our study, the methodology that has been implemented during this thesis will be presented. Here, the systems view of Arbnor & Bjerke (2009) will stand in focus as well as the methodological procedures for the empirical research that have been used. In the forthcoming chapter, a theoretical framework about middle management and its evolution of their status will be outlined, followed by theories about changes and change management. In addition, a bridge between these theoretical frameworks will be created in order to present the concept of the middle manager‟s role in organizational changes today. The empirical chapter presents and analyzes the data that has been collected through the interviews with four consultants. From these case studies different themes emerged, which will be discussed and analyzed in connection with the outlined theories. Every theme reflects a paradox that has to be considered in order to solve our research problem; the middle manager as change agent. In connection, an own developed theory will be outlined, which emerged through literature studies and the empirical research process. The thesis will be finalized with a short conclusion as well as future recommendations for further research within the outlined study area.
4 Limitations
This research has been limited towards merely conducting our empirical study with consultants. The personal viewpoint from top management, middle management and employees has been disregarded due to that we aim to gain a new insight about the middle manager‟s role as a change agent- the consultant‟s perspective. Furthermore, in the existing literature many studies have been done with middle managers and top-managers although very few with consultants. Additionally, we have limited our empirical research towards four in-depth interviews as we regard this as sufficient in order to answer our research question and to let the picture of the middle manager as a change agent slightly emerge for the reader. However, the picture of the middle manager as a change agent can only emerge through a combination between theory and case studies. Moreover, the extensive amount of literature concerning changes and change management made limitations in this area to a necessity.
5 The target group
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to show from a consultancy perspective how middle managers can act as change agents within organizations. This gives rise to our first target group for the thesis; business consultants.
We aim to solve our research question with the help of empirical studies by doing interviews with different consultants, by which we will obtain a broader picture about how experts experienced the involvement of middle managers in change situations. Based on the empirical findings and the theoretical background from the literature we want to point out how the role of a middle manager as a change agent is possible and what this role contributes to during organizational changes. Nowadays, an increasing number of companies contact consulting firms in order to solve specific problems or to handle changes that are necessary in order to stay competitive. Our research result can be a good support for consultants as it may show how the middle management layer can play an integral part in organizational changes.
Every consultant that was being interviewed by us showed a great interest in our chosen research field, at the same time as some of the interviewees explained that they have not been thinking in terms of that the middle management can constitute a vital contributor in organizational changes. Consequently, the concept that we are going to develop can be used by consultants when they are hired by companies in order to manage changes. If consultants know how they can use and involve the middle management more effectively as change agents, the outcome for a successful change will probably be higher for the organization per se.
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If we knew what we were doing it wouldn't be research. (Albert Einstein)
II Methodology
In this chapter the reader is provided with a pre-understanding about doing research, followed by arguments for the chosen methodological view, the „system approach‟. This approach will be used in order to achieve our research answer. Additionally, we will provide a detailed explanation to our research strategy, the „lighthouse approach‟; followed by the chosen data collection methods as well as the approach being used for the data analysis process.
1 The process of knowledge creation
The purpose of a research most often differs and is dependent on the researcher‟s field of interest. According to Arbnor & Bjerke (2009) the aim of a research project is either to create knowledge in order to explain a phenomenon or to create knowledge in order to understand a certain phenomenon. From the scientific point of view the explanation of a research problem is reached by causality and/or by finality. The perspective of understanding tries to interpret a certain research field and is based on our own understanding of a situation (Arbnor & Bjierke 2009). Also Ghauri & Grønhaug, (2005) classified research designs that have various purposes; the exploratory, descriptive as well as the casual design. Explorative research considers the collection of as much knowledge and information about a research field as possible in order to present a comprehensive view of the research area. In descriptive studies the problem is structured and a lot of information about the problem already exists. Casual research is well structured as is the descriptive study, but additionally the aim is to answer cause and effect related questions.
Fisher (2004) points out that the research purpose also depends on the issue whether a researcher wants to obtain a broad situation within a research field or an in-depth understanding of particular situations within a study area. A broadened view refers to obtaining a representative result, whereas a deepened understanding concerns an in-depth insight to the topic, for which case studies are the most suitable method to choose.
Our aim is to analyze and understand the role of a middle manager within organizational change processes. Therefore we are going to create our own understanding, based on theory and empirical findings, in order to create a significant knowledge. This can also be described as a creation of a deeper understanding within one special field.
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in the study. This role is also dependent on both the research approach as well as the relationship between the study field and the researcher itself. Fisher (2004) discusses four different research roles; „the judge‟, „the academic‟, the „covert participant observer‟ as well as the „fly on the wall‟.
In the research for our dissertation we will acquire the role of the academic due to the fact that we will study four different case studies without any involvement in the phenomenon per se. Nevertheless, by having this research role we have to be aware of that the consultants who provide us with the cases may try to influence us in a specific direction in order to advertise their individual consulting approaches. Therefore, it is good to have more than one case to get a more objective and multifaceted picture from the consultants‟ perspective about the middle managers role in organizational changes.
2 Research approach
For creating business knowledge different ways of approaching problems, phenomena, ideas etc exist. Therefore, methodology as a mode of thinking and acting (Arbnor & Bjerke, 2009) provides different perspectives and methodological views. The choice of the appropriate methodology approach depends on certain relations as shown in figure 2.
Arbnor & Bjerke (2009) explain that each human, as a creator of knowledge, has ultimate presumptions and understandings of his or her environment. This way of different thinking and differing assumptions influences the way we see problems and develop solutions for it. The relation between the ultimate presumptions and the use of methodological views is bridged by the „paradigm concept‟. This concept describes the assumptions of the researcher which are important to consider when doing research. It consists of the concept of Reality, the concept of Science, the Scientific Ideal, and the Ethic and Aesthetics viewpoints.
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Figure 2: The central function of methodology
Source: Arbnor & Bjerke 2009
As pointed out, the methodological approach has to fit with the study area as well as with the ultimate presumptions of the knowledge creator. Arbnor and Bjerke (2009) discuss three different methodological views that have to be considered and understood before choosing the right and most adequate alternative.
The Analytical View The Systems View The Actors View
The main aim of the analytical and systems approach is to create knowledge in order to explain certain phenomena. Therefore, the creator of knowledge subtracts unimportant facts and circumstances in both approaches in order to build models that can be described as simplified pictures of reality. The systems approach can create knowledge in order to understand instead of only giving explanations. While building models, the researcher for instance adds metaphors or narratives for representing. The aim of the actors approach is to create knowledge in order to understand and interpret reality as a social construct. This view does not only represent reality, its focus is to constitute it. Compared to the analytical and systems approach where the researcher can create knowledge by himself, the actors approach is focused on having dialogues with actors in order to create knowledge (Arbnor & Bjerke, 2009).
The Analytical View
Based on existing theories and techniques, the analytical approach starts by formulating a hypothesis that describes possible cause-effect relations. By using the strategies of induction, deduction and/or verification, knowledge is created. The analytical approach looks on operational definitions as ideals for doing research. The conception of reality of this view is „factive‟ and consists of summative components; independent of the knowledge creator´s subjective opinions and beliefs of this objective reality. The roots of the analytical view originate from analytical philosophy (Arbnor & Bjerke, 2009).
METHODOLOGICAL VIEW ULTIMATE
PRESUMPTIONS STUDY AREA
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The Systems View
Here, the creation of knowledge does not become as general as in the analytical view. It is related to one or several types of systems that explain the system-dependent knowledge. In order to explain or understand certain phenomena, the systems view accepts that a given product can be achieved by different producers as well as that a given product can lead to different products. The conception of reality is „factive‟ and consists of wholes that are constructed as systems. The roots of this approach are based on the systems theory, holism and structuralism (Arbnor & Bjerke, 2009).
The Actors View
In this approach the creation of knowledge is accomplished by creative activities in order to attack new problems, interpretations, understandings etc. The concept of reality of the actors approach is dependent on the creator of knowledge. Reality exists only as a social construction and is constantly confirmed and developed because of interactions. The construction of the social reality and the constructive interpretive procedures are guided by meta-theories. The actors view has its roots in social phenomenology (Arbnor & Bjerke, 2009).
The Concept of Complementarity
Despite the previous mentioned facts, it is important to keep in mind that the combination of the three methodological views is impossible according to Bjerke and Arbnor (2009). Due to the different beliefs in reality and consequently the different ultimate presumptions of the environment (e.g. objective or constructive), a mix of the three approaches would lead to a lack of consistency, stringency and credibility. Nevertheless, the methodological principle of complementarity provides the opportunity to use some of the three approaches and its techniques/methods as a „transformative operator‟ in order to attain a sustainable creation of knowledge (Arbnor & Bjerke, 2009). This means that when transferring concepts, theories, data, models and/or interpretations from one methodological view to another one, a transformation becomes necessary.
3 The systems view applied on a business context
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main characteristic of the systems view. The creator of knowledge gains information not only from the individual parts of the system but also from the construction of all the components together. In giving the most acceptable explanation or understanding of a certain setting the total picture of the system should be considered. Moreover, as a researcher it is important to be aware of that one part of the system cannot be removed or disregarded without risking that the whole picture will be influenced of the change (Arbnor & Bjerke, 2009).
In the systems view, the creator of knowledge furthermore aims to find out which factors will influence the whole system; a different approach compared to the analytical view, which aims to look at single-dimensional casual relations (Arbnor & Bjerke, 2009). This means that instead of looking at cause-effect as in the analytical view, the systems approach works with producer-product relations. A given product can become the result of different producers, by Arbnor and Bjerke (2009) referred to as „equifinality‟. Moreover, one single producer can lead to differing products, which is called „multifinality‟. In many of today´s business research areas, the systems approach is applied due to the fact that numerous producer-product relations exist. From the perspective of the systems theory, the study of organizations is interdisciplinary and can be described as any group of objectives that act structured and harmonized in a given system that cannot be determined, explained or understood in its components alone; often referred to as holism (Arbnor & Bjerke, 2009).
3.1 Management as a system
With regard to the different methodological approaches which were mentioned previously, the systems view is the adequate research approach for our study area. The knowledge about middle managers we aim to create cannot be put into another context due to the fact that it is related to a specific system. This knowledge creation is called „system-dependent knowledge‟ (Arbnor & Bjerke, 2009), where “[…] all systems are characterized by an
assemblage or combination of parts whose relations make them interdependent" (Scott, 2003,
p. 77).
The study of middle managers as actors within an organization requires an understanding of the organization‟s perception. From our ultimate presumption, we understand the organization as an open system that can be described as “…a kind of organism that exists in
constant interaction with its external environment and between its own internal elements.”
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Figure 3: Management as a system
Source: Drucker, 2008, Preface
4 Research strategy
The aim for our dissertation is to achieve a deepened understanding about the phenomenon of middle managers and their role as change agents during organizational changes. According to the methodology guidelines of Arbnor & Bjerke (2009), the methodical procedures refer to the way the creator of knowledge incorporates previously given techniques in a methodological view. Based on this, the used research strategy will be introduced in order to solve our research question and to meet the objectives.
Yin (1994) explains that the research in science occurs in many different ways and mentions five research strategies connected to this; experiment, survey, archival analysis, history as well as case study, all illustrated in table 1. These strategies are distinguished by three conditions, namely the type of research question asked, the degree of control the researcher has over behavioral events and the degree of focus on contemporary or historical events. Yin (1994) has come up with a table presenting these three conditions and how they are related to the mentioned five research strategies. In order to differentiate among the various
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research strategies it is of importance to consider what type of research question is asked in order to enable the best possible strategy for the research.
Strategy Form of research question Requires control over behavioral events? Focuses on contemporary events?
Experiment How, why Yes Yes
Survey Who, what, where,
how many, how much
No Yes
Archival analysis Who, what, where,
how many, how much
No Yes/No
History How, why No No
Case study How, why No Yes
Table 1: Research strategies
Source: Yin, 1994, p. 6
Generally, all strategies can be used when aiming to get an answer on a „what‟ question, whereas questions as „how‟ and „why‟ rather match case studies, experiments or history. Our dissertation aims to answer „how‟ and „what‟ questions, which is why we chose to use case studies as a strategy. Yin (1994) points out that the aim of using a case study as a strategy should be to investigate a contemporary event, over which the researcher has little or no control. Fisher (2004) further explains that case studies enable the researcher to discover interrelationships between all involved factors being part of the study such as people, groups or other variables. The strategy of using experiments is conducted when the researcher has the possibility to directly manipulate behavior in a systematic way. History is chosen as a strategy when dealing with the past and no relevant people are alive anymore. Here the researcher mainly takes use of differing documents and artifacts that may be helpful for the study. In case studies a whole variety of data can be used for collecting information, such as documents, artifacts, interviews or observations (Yin, 1994).
4.1 Case studies
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Usually two or more cases can be used for comparison at the same time as this strategy may be chosen in order to represent the whole. Multiple-case studies, moreover, are regarded to be more extensive than single-case studies, which has the disadvantage of being a more time consuming research strategy (Yin, 1994).
According to Arbnor and Bjerke (2009) the work with case studies is useful in order to analyze complex knowledge. Nevertheless, it has to be considered that a case only represents a „certain type of system‟ and does not represent all other systems. Due to the fact that we want to get an insight and understanding of the role of middle managers within an organizational system and their role in change processes we decided to conduct case studies. These actions were taken with the aim to complete our view of the middle manager from the theoretical perspective with a more practical approach, which is based on the consultant perspective.
As explained in the introduction, the „lighthouse approach‟ illustrates the research strategy of this thesis. This approach presents multiple-case studies as shown in figure 4. Therefore, four different management consultants were chosen who provided us with a specific knowledge and primary data about different scenarios they have faced during organizational changes. Due to the fact that each case only presents one perspective and one specific system, it was of advantage to conduct four case studies as this provided us with a broader insight to the real world of middle managers in organizational changes. The result of the conducted interviews are presented, analyzed and interpreted in chapter 4 of this thesis.
Figure 4: The lighthouse approach
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By using case studies, the creator of systems knowledge tries to describe a real system. According to Arbnor & Bjerke (1997) two different perspectives have to be distinguished; the academicians will and the consultants will. From the academician perspective on the system, different results will be obtained as when doing the same research from a consultant perspective due to that the latter one has a more practical approach. As shown in table 2, the access to the real system is influenced by the chosen perspective due to their differing frame of references. This fact influences the conditions for each situation. As a result of that the case studies for this thesis were conducted through interviews with consultants, the academicians‟ perspective is not fully represented in the cases. However, the final analysis of the empirical data will lead to that both approaches will be apparent due to the fact that the „Consultants Will‟ will be connected to the „Academicians Will‟. This will be achieved due to that we will analyze the empirical findings by using appropriate theoretical aspects in order to let our research answer emerge.
Academicians Will Consultants Will
be matter of fact but objective be matter-of-fact but subjective
be many-sided and impartial be one-sided and partial
be theoretical be practical
have plenty of time have a time limit
want to describe want to change
be inexperienced and difficult to
understand be experienced and professional
Table 2: Expectations of members of the real system
Source: Arbnor & Bjerke, 1997, p. 242
5 Sample selection
This research is done through a multiple-case study due to the fact that four different case studies are conducted. The cases will be based upon four different interviews with the consultants Peter Cheese, Mats Lindblad, Johan Majlöv and Dorte Sandager.
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subjective judgment of the researchers. Therefore, the gained results are not being fully „representative‟ and cannot be applied on a whole group. But, this type of sampling can be useful when a deeper understanding of a certain phenomenon is needed (Ghauri & Grønhaug, 2005), which is the intention for our study. For that reason, our research strategy will be based upon a non-probability sampling.
5.1 Sample criteria
For the selection process of the consultants, we used criteria that were closely related to the research objectives. As we aim to analyze the role of middle managers within change situations, we searched for experienced consultants who work in the field of management consulting with a focus on change management. Further criteria were international experience as well as experiences with smaller and bigger companies. After an internet research as well as recommendations of the professors, four suitable consultants were found. In the initial contact, the research field and purpose were introduced. The feedback from all consultants was positive and everyone was interested in the topic, hence willing for an interview. Every consultant fulfills the defined criteria; they work in the field of management consulting with change management as one of their major focus. Furthermore, as presented in figure 5, every consultant represented at least one minor specialization field which resulted in that our field of research was viewed from different perspectives; based on the particular specialization fields.
Figure 5: Specialization fields of the consultants
Source: constructed by the authors
Peter Cheese, Accenture
Peter Cheese is the former managing director for the Accenture Talent & Organization Performance service line with a focus on talent management, HR functions and organization- as well as change management. Cheese has more than 20 years of experience with clients in all industry sectors around the world and he has led and supported large programs of change across a number of organizations.
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Johan Majlöv, Solving Efeso
Johan Majlöv works as a consultant in the management consultancy firm Solving Efeso in Göteborg. He has been working as the Vice President at the company since 2005. Majlöv is an expert in lean enterprise, supply chain- and change management. Before working as a consultant he held several managing positions in multinational companies both in Sweden as well as in the UK.
Mats Lindblad, Business Advantage
Mats Lindblad is the owner and CEO of Business Advantage R&D Sweden at the IDEON Science Park in Lund. He has a background in behavioral sciences and has been working as CEO and as a business consultant for 10 years. Lindblad is specialized in the development of small and medium sized businesses. Furthermore, he has a large expertise in leadership training courses for managers and other key persons.
Dorte Sandager, Transitions
Dorte Sandager is the founder of the consulting company Transitions in Copenhagen. Prior to this, she worked for more than 15 years as a consultant at Accenture. Sandager gained a lot of international experiences with big global companies. Today she works as an external advisor for companies who aim to go through large change processes. Furthermore, her main working areas are leadership- and organizational development as well as communication- and conflict management.
6 Data collection methods
For solving the research questions, several methods can be used in order to collect data. The literature distinguishes between quantitative and qualitative methods (Ghauri & Grønhaug, 2005). In the information gathering process the quantitative research method involves a lot of measurements and statistical analysis (Patel & Davidson, 2003). Thereby, the gained data derives mostly from numbers. The qualitative method is more concentrated on a deeper understanding of a certain phenomenon. The collection of data occurs through interviews and analysis of text material (Patel & Davidson, 2003). Arbnor and Bjerke (2009) point out that there exist two different techniques for gathering this data; either through primary sources or secondary sources. Primary sources refer to the collection of new data, while secondary information regards the utilization of data that has been collected previously by other researchers. It is moreover explained that primary sources can be gained by conducting direct observations, interviews or experiments.
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literature review will be presented. Therefore, specific concepts and models are elucidated. This framework is necessary in order to analyze and interpret the empirical findings at the end. Nevertheless, a researcher has to be aware of that every document has been written for a special purpose and for a certain group of people, which makes a critical interpretation of the written content to an important process.
As mentioned above, the empirical research is based on case studies that have been conducted. In case study research, the data can be collected through six sources of evidence, namely documents, archival records, direct observation, participant observation, physical artifacts as well as interviews (Yin, 1994). In this thesis primary data gained through interviews has been used.
6.1 Interviews
The research interview is a general term for several types of interviews. They can be conducted in differing manners. In the literature, writers use different terminologies to distinguish the diverse techniques. Fisher (2004) differentiates between the open interview, the pre-coded interview as well as the semi-structured one. In the open interview, the interviewer has an informal conversation with the interviewee, at the same time as the interviewer leads the direction of the conversation. Pre-coded interviews are completely controlled by the researcher as he or she asks questions from a script. These questions should be asked in a logical order. Moreover, the interviewee gets the chance to choose from a specific amount of answering options that are provided by the researcher. Lastly, the semi-structured interview is a mix between the open- and pre-coded type. The interviewee can answer the questions in a free manner, although the interviewer has specific topics and questions that need to be covered.
Saunders, Lewis and Thornhill (2009) distinguish the level of formality and structure of interviews by the categories: structured or unstructured interviews as well as in-depth and semi-structured interviews. The formalized structured interviews are often used for doing quantitative research. The semi-structured type is a non-standardized interview for doing qualitative research and the order of questions depends on the flow of the conversation. Unstructured interviews are often referred to qualitative research methods. They are informal and it is mostly the interviewee´s perception that guides the interview.
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concerns the fact of asking open or closed questions; open questions have no fixed alternatives for answers whereas closed questions have.
Also if the terminologies of the various authors differ in some manner, it is easy to draw parallels between them. For attaining the best result in connection to our research purpose we chose personal semi-structured interviews. A guideline with different theme questions, which were necessary to cover was prepared by us and is presented in the appendix. Nevertheless, dependent on the atmosphere with the interviewee as well as the given answers, the kind and order of questions differed. Despite some special formulated questions, the consultants got the freedom to talk in a free manner about specific events and experiences he or she had made in our area of interest.
However, we introduced every interview by asking the consultants for a personal definition of the middle manager in order to create a common understanding for our ongoing interview. Consequently, we went on with more open questions that gave rise to a narrative of change situations within organizations with the focus on middle managers. If the interview went too far from our research field due to the consultants diverse narratives, we were prepared with certain follow-up questions that led the interview into the right direction again. Certainly, we also had to be aware of the fact that the consultants will not provide us with merely positive aspects of change processes and the middle managers contribution to it. Due to the fact that we want to get an insight of the middle managers role within organizational changes in today‟s business world it is very useful that not only positive aspects stand in focus in the consultants‟ narratives. Especially the descriptions of failed change implementations gave us a lot of input for solving the research question.
7 Data analysis
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support a fragmentation of qualitative data. Rather, structuring of narratives is suitable in order to maintain the context of the story.
In this thesis all three data analysis techniques were combined. First, in order to get a better overview about the key points of each interview, summaries were completed. Furthermore, it was possible to define certain categories and structures in each interview. Based on this structuring process, relations between the cases were identifiable so that certain themes for the data analysis emerged. In chapter 4 the emerged themes will be presented in the form of paradoxes that make sense in relation to our research question. In addition, the paradoxes will be discussed and analyzed in combination with the theoretical framework that is outlined in the forthcoming chapter 3. The aim of the analysis is to let a solution for our research problem emerge.
8 Research quality
For the creation of knowledge certain quality standards have to be respected; for primary as well as secondary data. The execution of interviews is a suitable method for gathering valid and reliable data. Nevertheless especially semi-structured and in-depth interviews can induce quality issues. Saunders, Lewis & Thornhill (2009) suggest the five P´s in order to overcome some data quality issues; “prior planning prevents poor performance” (p. 328).
8.1 Validity
The main purpose of validity is the matter of meaningfulness due to the fact that the term „valid‟ refers to truth (Fisher, 2004). Three different types of validity are presented by Yin (2003); construct validity, internal validity and external validity. Construct validity is described as “establishing correct operational measures for the concepts being studied.” (p. 34). Here three aspects become important in order to increase the construct validity. First and secondly, multiple sources of evidence as well as an establishment of chains of evidence should be conducted through the data collection process. Furthermore, the researcher should write case study reports and let these be reviewed by the concerned key informants. Internal validity deals with “establishing a casual relationship, whereby certain
conditions are shown to lead to other conditions.” (p. 34). According to Fisher (2004) internal
validity intends to figure out relationships of cause and effect and the validity within this concept is mainly connected to the collected data and whether it can confirm cause and effect or not. External validity is defined as “establishing the domain to which a study‟s
findings can be generalized” (Yin, 2003, p. 34) and is a main problem in case study research.
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will be used for our dissertation, Bjerke (2009) explains that this approach does not believe in total objectivity and that validity rather depends on circumstances.
In order to ensure the validity in this thesis we put a specific focus on the data collection process. Beforehand, an interview guideline was established with respect to our problem definition and purpose of study. In order to improve the validity during the data collection process, all interviews were recorded on a digital recorder. The recording made it easier to rehearse the answers of the consultants and it serves a useful proof for the reproduction of the right interview content. Moreover, in order to improve the research quality, we asked all respondents if we can contact them again in case of further questions or lack of clarity. Furthermore, we send the main transcript parts to the consultants in order to make sure that the gained data was understood correctly so that the built cause-and-effect relations were not based on misinterpretations. Due to the limited amount of case studies as well as the differing interview results, it should be regarded that it is not possible to generalize the empirical data; hence external validity is not fully completed.
In order to improve validity in the theoretical framework, scientific articles as well as books from multiple sources were used. All of them are documented in the reference list. Moreover, a regular feedback by our supervisor supported us to improve the quality of our research.
8.2 Reliability
The goal of measuring reliability of a study is to reduce possible errors and biases (Yin, 2003). Reliability refers to a research result that can be repeated and consequently end up with the same findings. Regardless of which person that conducts the research, the result should not vary. Denscombe (2002) defines reliability as: “Reliability relates to the methods
of data collection and the concern that they should be consistent and not distort the findings.”
(p. 100). Arbnor and Bjerke (2009) additionally claim that reliability can be controlled directly through the repeating of the research process.
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Management is, above all, a practice where art, science, and craft meet.
(Henry Mintzberg)
III Theoretical framework
The chapters included in the theoretical framework provide an understanding for the field of management as well as the definitions connected to it. Furthermore, the historical evolution of the middle manager‟s role will be illustrated. In addition, the concepts of change and change management are discussed. The final chapter of the theoretical framework aims to present the middle manager‟s role in organizational changes.
1 The field of management
Management is a broad and well discussed field; literature offers an endless collection about management and managers. Nevertheless, with some exceptions, the attention on managers is mostly focused on CEOs and the top management layer. Jack Welch, the former CEO of General Electric (1981-2001) for instance, is only one out of many examples who has been in the centre of attention for his achievements. Another example is Charles Prince, the former CEO of Citigroup (2003-2007), who has been attacked by analysts because of his failures during his leadership.
Researchers are examining how this management layer works and why some are more successful than others. Nevertheless, it is important to keep in mind that the top management is equal to the middle level as well as the bottom level with regard to its importance for the organization. Unfortunately, these management layers are rarely in focus for researchers, although especially middle managers “have as much to say about
organizational success or failures as do those at the top” (Ostermann, 2009, p. 2).
In order to create a common understanding for the terminology being used in the following chapters, it is vital to provide the reader with some important explanations about the different management perceptions and definitions.
1.1 What is management?
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“manus” that means hand. Other scientists also derive the word management from the Latin word “manum agere“, which means “lead by the hand” (Staehle, 1999, p. 71).
The invention of management started a long time ago. In the 1880, Frederick Winslow Taylor and Henry Fayol were the first ones who popularized the word „management‟ as well as the tasks being connected to this notion (Drucker, 2008) The importance of the term management in today‟s world, where organizations in all divisions and sizes exist, is stated by Peter Drucker who pointed out that management is the most important innovation of the twentieth century (Drucker, 2008). In connection to that, the role of a manager within an organization can be seen as very influential; "the manager is the dynamic, life-giving element
in every business" (Drucker, 1993 p. 3).
Drucker has often been regarded as one of the most well known and influential management gurus and explains in his book „The practice of management‟ (1993) the three main functions of management: managing a business, managing managers, and to manage workers and work. Thereby, the task of a manager is “creating a true whole that is larger
than the sum of its parts, a productive entity that turns out more than the sum of the resources put into it. [...] This task requires the manager to bring out and make effective whatever strength there is in his resources - and above all in the human resources - and neutralize whatever there is of weakness." (Drucker, 1993, pp. 295-296). From this it can be concluded
that management is a complex and challenging field that has to be regarded in its entirety in order to manage organizations successfully.
1.2 Management and hierarchies
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area of an organization can influence the levels of the organizational structure (Leavitt, 2005).
With regard to the fact that the focus of this master thesis is about one specific level of management – the middle management, a certain definition about this group becomes crucial. Figure 6 shows the structure of an organization which will be regarded for this dissertation with its several layers of management. Nonetheless, it is important to keep in mind that the structure and number of managers highly depends on the size of the organization. The pyramid shape of the presented figure shows clearly that the top management occupies the peak of an organization and normally the number of people working on this level is less than the people in the remaining layers of the company. Middle management is the level between top management and first-line management and this position is often referred to as the „sandwich-position‟ in literature (Gattermeyer, 2001). The first-line managers, also referred to as supervisors, are the people who are directly responsible for the day-to-day operations of a group of people (Daft, 2008).
Literature proves that the terminology regarding management layers and management functions is tremendous and it is hard to find any clear or general accepted definition about the term middle management per se. However, in order to create a common understanding for the reader, this thesis will represent the middle manager as defined by Daft (2008). This means that middle management will be regarded as the level above first-line management and below top management.
Figure 6: Management layers
Source: constructed by the authors with inspiration from Daft (2008, p. 14)
Top
Management
Middle Management
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1.3 Management vs. Leadership
Frequently, in practice as well as in theory, the terms management and leadership are used in the same context. However, the terms have different meanings.
Management concerns a certain position in a hierarchy of an organization, in contrast to leadership, which rather is referred to as an activity to influence people in a certain direction by managing and creating meaning (Bryman, 1997). In order to become a leader, a person needs „followers‟. Smircich & Morgan (1982) employed the term „manager of meaning‟ when describing a leader. Bryman, (1997) confirms this terminology by explaining that a leader promotes “values which provide shared meaning about the nature of the organization” (p. 277). According to the notion of „managing of meaning‟ further leadership activities involve the articulation of visions as well as the telling and the embodiment of stories (Gardner, 1996).
People are seen as one of the most valuable resource for every organization and an important task for a leader is to lead these people in the right way and to create a common understanding amongst the workforce. The art and power of leadership should not be underestimated due to the fact that “Sensemaking is the feedstock for institutionalization.” (Weick, 1995, p. 36). In order to become a successful and sensegiving leader, it is not important whether the leadership is formal or informal. The formalized setting of a leader implies a specific pattern of authority due to the role and position the leader has within an organization (Smirchich & Morgan, 1982). However, this does not say anything about the quality of a leader as a sensegiver. Consequently, certain people in an organization can be informal leaders although they have not been allotted any position of power or formal authority. A strong personality and the ability to create a shared meaning are only some characteristics that signify a leader. However, these attributes are often prominent amongst informal leaders as has been illustrated by Howard Gardner in his book „Leading minds‟. There, successful leaders are presented; formal and informal ones.
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We should not look back unless it is to derive useful lessons from past errors,
and for the purpose of profiting by dearly bought experience. (George Washington)
2 Historical evolution of the role and status of middle managers
In order to understand what is happening to middle managers and their role in today´s world it is valuable to cast a historical glance on the evolution of the middle manager‟s role and status. Attention needs to be paid to the complexity of changes of the business environment that affected the jobs of middle managers. This background information is crucial in order not to make any generalizations or justifications about this management layer; neither of optimistic nor pessimistic character.
From the early 1920´s century until today, the perception of middle managers has changed. Although there is no generally accepted understanding of this management layer, certain trends and positions are observable. Inspired by Osterman (2009), figure 7 shows a simplified model that depicts how the middle management layer has emerged and been perceived over decades. It represents the middle managers as heroes, victims as well as villains and also if the reality looks more complex, this concept is beneficial in order to get an understanding about the evolution of the status and the differing roles of middle managers during the latest decades.
Figure 7: Evolution of the status and role of middle managers
Source: constructed by the authors with inspiration from Ostermann (2009)
2.1 Middle managers - The heroes
As pointed out in the beginning of the chapter, the emergence of management and in particular of the middle management is visible in the economic history. The economic historian Alfred Chandler (1977) wrote about the importance of management in order to facilitate economic growth and efficiency. In addition, Osterman (2009) points out that in the early 1920´s century, “without middle management´s coordination of production and
distribution, firms could not grow big enough to take advantage of the technological potential of most production and low unit costs” (p. 18). Furthermore, due to the rise of multidivisional
Start of the modern economy Middle Managers as
heroes
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firms, the importance of cross coordination grew and the function of middle managers was of avail. Middle managers were described as project program managers, market program managers, interface managers and scheduling managers, “[who] all helped to facilitate flows
of material funds, and ideas through the enterprise” (Chandler, 1977 p. 463). Osterman
(2009) regards the status of middle managers as heroes during that time, due to that they enabled growth and efficiency for companies.
However, during the following decades, the number of middle managers working as administrative coordinators grew progressively. As a result, the size of organizations became bigger and thereby the bureaucracy and hierarchy increased a lot. Here, relations to Max Weber are visible, who viewed “[…] bureaucracy as the logical final step of an organizational
trajectory” (Osterman, 2009, p. 34). Nevertheless, there were a lot of contrary voices, who
argued that hierarchy and bureaucracy do not support work efficiency. During time, it became noticeable that the respect towards middle managers decreased. This perception gained greater significance and the status of middle managers as „heroes‟ developed to a more unthankful and unenviable position.
2.2 Middle managers - The victims
The sociologist C. Wright Mills did research in the 1950´s when the number of „white-collar workers‟ grew. He identified that the middle management has a rather poor position in an organization. They were seen as “the cog and the beltline of the bureaucratic machinery
itself…the servant of decision, the assistant of authority” (Wright Mills, 1956, p. 80). In
companies, it was common that top management made the decisions and set the agenda, while the middle management carried them out. Over time, it became obvious that middle managers ”[…] live inside organizations and have little voice regarding to the strategies of
those organizations” (Osterman, 2009, p. 5). Therefore, more and more middle managers
were perceived as victims and string puppets within an organization. The middle man had to implement the regulations directed from the top without being involved in the decision process. Without an involvement in the decision process it is not easy to create meaning of a given order. However, middle managers need to be clear about what has to be done in order to create meaning and give sense to the people below (Floyd & Wooldridge, 1994).
